Uganda’s formal exports to EAC Partner States have been on the rise, increasing to 4.7 trillion shillings from 1.6 trillion shillings in just eight years. According to the Trade and Investment Report by the ministry of Finance, Uganda’s exports to the rest of the regional players was 425.2 million US-Dollars in 2010, but jumped to 1.25 billion US-Dollars by the end of December 2018. The reports indicate that exports to Kenya and South Sudan registered the fastest growth. For instance, exports with Kenya jumped from 180 million US-Dollars in 2010 to 580 million in 2018, reflecting a growth value of 1.5 trillion Uganda shillings. Trade with Burundi and Tanzania remained relatively low, below 380 billion shillings while exports to Rwanda averaged at 800 billion shillings. The East African Community remains the leading destination for Uganda exports, which are largely composed of unprocessed agricultural products. Source KFM

In this three- day Regional Industrial Fair, an opportunity will also be given to a maximum of local and medium-sized local industries to create and establish lasting and reliable relations with the economic operators of the sub-region, according to Olivier Suguru the president of AIB Burundi head of state, Pierre Nkurunziza was one of the guests of honor. In his opening speech, he said the industry supports not a group of people, but it also strengthens the sovereignty and strategic autonomy of a country. In short, the industry allows daily progress in all areas of the life of a people; it is above all for the latter, a source of stories of success, stories of pride. “In light of the foregoing, we are obliged to find all solutions to the problems that undermine the growth, innovation, and competitiveness of our industry. “The theme chosen for this second industrial exhibition in Burundi, namely ‘Innovation, a determining factor in industrial competitiveness’, will undoubtedly serve as inspiration and food for thought.” President Nkurunziza said Burundi with a tear-year national development plan The president of Burundi emphasized in his speech that Burundi has just acquired its own National Development Plan that is stated to be the very first National Development Plan developed established by the Burundians themselves. “The Ten Year Plan, which extends from the year 2018 to the year 2027, will now be a road map for all those who want to invest in Burundi or simply support us through different projects.” Said,...

THE Dar es Salaam Port set to accommodate large vessels with capacity to carry between 4,000 and 6,000 tonnes after construction of a new berth. Works, Transport and Communications Minister, Isack Kamwelwe inaugurated berth Number One on Tuesday evening, saying the completion of berth number one was part of an ongoing construction of eight berths at the port. The government allocated a total of 337bn/-to repair and construct berth number one to eight, in an ongoing project to expand the Dar es Salaam Port under the Dar es Salaam Maritime Gateway Project (DMGP). The project is aimed at improving the effectiveness and efficiency of the port for the benefit of public and private stakeholders. The project involves two components, including improving the physical infrastructure and institutional strengthening and implementation assistance. Eng. Kamwelwe said the expansion of the port was among pledges the President John Magufuli made during the election campaigns in 2015. During the campaign the President promised to look for funds to upgrade the ports and transport infrastructure in the country. The completed berth number one, having 191 metres width, is now functioning and the vessels started to dock for loading and offloading. The Minister further said it is expected that the construction of berth number two, 255 metre width, would complete in next mid July. “Completion of construction of these berths means that the port is going to receive many ships...there are also enough machineries for loading and offloading the consignments. Making the vessels spend less time at...

Tanzania has pledged to ease business environment for Rwandans wishing to do business in or with the neighbouring country, for mutual benefit  of both countries. Tanzania’s representatives gave the reassurance Wednesday during a high-level bilateral investment forum in Kigali. On the table is the removal of existing trade barriers to ease doing business and forging investment partnerships. Rwandan businesspeople at the meeting said those who want to set up businesses in Tanzania are not facilitated enough. Fred Seka, president of the Federation of East Africa Freight Forwarders, said that he registered his company, Gorilla Logistics in Tanzania in 2016, but he is yet to receive a licence to date. “We are not informed why the process has delayed,” he said. “There have been some improvements in trade facilitation whereby unnecessary non-tariff barriers were removed.  However, on the operation side, there are some challenges such as difficulties faced by Rwandans to effectively own and run a business in Tanzania”. The CEO of the Private Sector Federation (PSF), Stephen Ruzibiza, said the number of weigh bridges reduced from seven to three, which brought down the time that trucks carrying goods spend on the roads. “But there are still some challenges, such as facilitating freight forwarders to access the port, and the High Commissioner of Tanzania to Rwanda has promised us that we will continue discussing them so that they get addressed,” he said. Amb. Ernest Jumbe Mangu, the Tanzanian top diplomat to Rwanda, said that the complaints raised by the business community will...

FOLLOWING President John Magufuli’s directives to strengthen trade between Tanzania and Malawi, a focal team has embarked on a mission to restore its market share. During his two-day visit in Malawi on April 24, this year, President Magufuli directed Tanzania Port Authority (TPA), together with other stakeholders to address challenges facing the Malawian business community. The team, which arrived in Mbeya yesterday, travelled from Dar es Salaam via Tanzania Zambia Railway Authority (Tazara), to inspect the railway line to see whether it could be used as an alternative to reduce the number of days for Malawian cargoes. The team includes members from TPA, Tazara, Tanzania Revenue Authority (TRA), Tanzania Truck Owners Association (Tatoa), Tanzania Freight Forwarders Association (Taffa), Tanzania International Container Terminal Services (Ticts), Dar es Salaam Corridor Group (DCG) and Malawi Cargo Centre Limited (MCCL). Speaking after an indoor meeting, Tatoa chairperson, who doubles as the team leader, Ms Angelina Ngalula, said Tanzania and Malawi had a long history. Therefore, it was high time for the two countries started benefiting more from their bilateral relations. Ms Ngalula commended President Magufuli’s move for securing the market for Tanzanians outside the country during his state visit and urged Tanzanians to utilise opportunities available in neighbouring countries. “Following the President’s directives we decided to act promptly. We formed a team that will work on all challenges facing the Malawian business community to ensure we encourage them to use our ports.” “We visited the Malawian dry port here in Mbeya to inspect the...

MALABO, Equatorial Guinea – Central Africa stands to benefit the most from the African Continental Free Trade Area (AfCFTA), data from the African Development Bank shows. Hanan Morsy, Director of Research at the Bank, revealed the findings at the launch of one of the Bank’s flagship reports in Malabo, where the African Development Bank is hosting its Annual Meetings. Mr. Morsy said Central Africa’s real income could increase by as much as 7% in one of the scenarios that researchers describe in the 2019 African Economic Outlook. By the same calculations, East Africa, currently, the star performer on the continent, would experience an increase of around 4.2%, followed closely by North Africa. The scenarios measure the potential outcomes of the AfCFTA, ranging from one (least impact) to four (greatest impact). “While there are differences in gains, all African countries are better off with regional integration than without,” Morsy said. He said current levels of growth were not adequate to generate jobs for millions of unemployed Africans, but regional integration could stimulate the growth needed to make a dent in unemployment, adding that Africa needed to grow between 4% and 6% in order to turn the tide. The Outlook predicts that Africa can add 4.5% to its GDP, provided that governments do away with bilateral tariffs and non-tariff barriers and keep rules of origin simple. The launch included a panel discussion by Finance and Economic Planning Ministers, who are also Governors of the Bank. Aïchatou Kané, from Niger, said the Economic Community...

African leaders on Wednesday underscored the urgent need to fast-track the continent’s regional integration process in order to accelerate Africa’s economic transformation. The call was made at the opening ceremony of the African Development Bank’s (AfDB) 2019 Annual Meetings, in Malabo, Equatorial Guinea, with the theme: “Regional Integration for Africa’s Economic Prosperity.” “Apart and divided, Africa is weakened. Together and united, Africa will be unstoppable,” the Bank’s President Akinwumi Adesina told delegates at the packed Sipopo Conference Center. Adesina urged African governments to work toward the elimination of non-tariff barriers. “Pulling down non-tariff barriers alone, will spur trade by at least 53%, and potentially double trade,” he said. The opening ceremony was presided over by the host nation’s President Teodoro Obiang Nguema Mbasogo. Also in attendance were King Letsie III of Lesotho; President Félix Antoine Tshisekedi of the Democratic Republic of Congo; and Ambrose Mandvulo Dlamini, Prime Minister of eSwatini. High-level government officials from Rwanda, Cameroon, the Central African Republic, and Côte d’Ivoire were also present. In his opening speech, President Obiang Nguema Mbasogo recalled that Equatorial Guinea, once one of the poorest countries in the world, has since been radically transformed with one of the highest per capita incomes on the continent. “For me, development is not about per capita income, it is about expanding the opportunities for the people to live a more dignified life,” Obiang Nguema Mbasogo said. “Equatorial Guinea is open for business. We are committed to regional integration for shared prosperity. We count on the...

East African countries plan to increase spending dramatically on infrastructure projects in budgets to be released today. It’s not clear whether they can afford it. Kenya, Tanzania, Uganda, Rwanda and Burundi will unveil plans to fund the building of more roads, railways and power plants, as well as expand services such as healthcare and education, for the year starting July 1. In most cases, this will raise budget gaps as a percentage of gross domestic product, and increase borrowing requirements.“There is a risk of rising fiscal deficits coming from the fact that many have ambitious revenue targets they may fail to meet,” said Tony Watima, a Nairobi-based independent economist. Spending will probably climb about 10 per cent in Kenya in the next fiscal year, 17 per cent in Uganda and 11 per cent in Rwanda, while it will be broadly flat in Tanzania, the nations’ respective governments have said in forecasts. While the governments forecast that revenue will increase by double digits next year, Kenya, Uganda and Tanzania all have plans to approach the debt markets to help raise the funds to finance their deficits.In Kenya’s case, the nation will borrow about Sh607 billion ($6 billion) locally and internationally in 2019-20, according to Treasury Secretary Henry Rotich.GDP in East Africa will probably expand 5.9 per cent in 2019 and 6.1 per cent in 2020, according to the African Development Bank, making it the fastest-growing region on the continent. Economic expansion in Kenya, Tanzania, Uganda, Rwanda and Burundi will average a...

East African countries plan to increase spending dramatically on infrastructure projects in budgets to be released Thursday. But the question many ask is whether those countries can afford it. Kenya, Tanzania, Uganda, Rwanda and Burundi will unveil plans to fund the building of more roads, railways and power plants, as well as expand services such as health care and education, for the year starting July 1. In most cases, this will raise budget gaps as a percentage of gross domestic product, and increase borrowing requirements. “There is a risk of rising fiscal deficits coming from the fact that many have ambitious revenue targets they may fail to meet,” said Tony Watima, a Nairobi-based independent economist. Spending will probably climb about 10% in Kenya in the next fiscal year, 17% in Uganda and 11% in Rwanda, while it will be broadly flat in Tanzania, the nations’ respective governments have said in forecasts. While the governments forecast that revenue will increase by double digits next year, Kenya, Uganda and Tanzania all have plans to approach the debt markets to help raise the funds to finance their deficits. In Kenya’s case, the nation will borrow about 607 billion shillings ($6 billion) locally and internationally in 2019-20, according to Treasury Secretary Henry Rotich. GDP in East Africa will probably expand 5.9% in 2019 and 6.1% in 2020, according to the African Development Bank, making it the fastest-growing region on the continent. Kenya is implementing its so-called Big Four agenda, which will see the region’s...

East African Community finance ministers face a tough task this week (Thursday) as they present their budget statements for the 2019/2020 fiscal year with a focus on bringing more people and businesses into the tax bracket to service the rising public debt and reverse the fall in revenue collections. The ministers will also be looking to allocate the additional resources to the debt-servicing kitty through the Consolidated Fund Services. EAC partner states are considering ways of widening tax brackets to boost revenue collections and channel more domestic resources towards repayments of interest on billions of dollars’ worth of loans procured to fund development projects. The EAC has been trapped in the web of infrastructure development which has seen millions of dollars find their way into various projects such as pipeline, road, rail, airports, and ports development. It is, however, argued that while infrastructure development is important to the economic development of a nation, funding for these projects is nudging the national economies into a debt overhang, with most of the expensive loans coming from China in exchange for project contracts. DAR ES SALAAM   Source The EastAfrican